TWC Capital advises Hela on major FDI deal

TWC Capital, a leading corporate finance advisory firm under TWC Holdings, successfully served as the sole financial adviser to Hela Apparel Holdings PLC on its divestment of two running garment factories in Mawathagama and Narammala, including a freehold property with a warehouse in Uhumeeya to Q Collection Pte Ltd, a Singapore-based investor backed by Bangladeshi interests.

TWC Capital successfully managed the structuring of this transaction, considering the complex financial and strategic requirements of Hela Group, by working closely with the Board of Investment (BOI) in order to obtain the regulatory approvals to close the deal. 

The fact that this transaction was closed during a time of global uncertainty is a testament to TWC Capital’s experience and understanding of policy and regulatory issues that arise during cross-border transactions. 

TWC Capital led discussions with the BOI to ensure full regulatory compliance and secured this significant foreign direct investment (FDI) at a time when Sri Lanka’s apparel exporters are under pressure from global headwinds, including a 44 percent tariff on the US imports affecting around 40 percent of the country’s garment exports. 

In this regard, TWC Capital and Hela received proactive support from the BOI in navigating through a series of complicated agreements to be executed, working according to a tight deadline for transaction close. This transaction therefore sets a benchmark for corporate finance advisory by TWC Capital, considering its policy and regulatory complexity.

This acquisition not only injects the much-needed capital into Hela but also underscores the resilience and appeal of Sri Lankan apparel manufacturing assets for long-term investors. The fact that the garment factories acquired would focus on European markets was a positive factor and reinforced Sri Lanka’s competitiveness in high-end apparel manufacturing, despite the uncertainty on GSP Plus. 

TWC Holdings Founder and Chairman Thilan Wijesinghe stated, “This investment reflects continued regional interest in Sri Lanka’s apparel sector and a realignment of regional export manufacturing capacity amid shifting global and regional dynamics.” 

TWC Capital CEO Rasanja Perera, CFA added, “We are pleased to have advised Hela during a pivotal moment. Transactions of this nature not only inject the much-needed FDI into the country but also set a precedent for regulatory clarity and investor confidence.”